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Externalities for an infrastructure asset are issues:
Correct Answer: A
Externalities are the positive or negative impacts of an asset that are not reflected in its financial costs. Why A (Impact on the environment) is correct: Infrastructure assets (e.g., roads, dams, power plants) create environmental and social externalities, such as: Air pollution from transportation projects. Habitat destruction from hydroelectric dams. Noise pollution from airports. Why not B or C? B is incorrect-technical issues (e.g., equipment failure) are not classified as externalities. C is incorrect-externalities originate from the asset itself, not external factors. References: OECD: Managing Environmental Externalities in Infrastructure Projects (2022)